MINNEAPOLIS, May 15, 2003 (BUSINESS WIRE) -- As the home refinancing market
continues to boom, U.S. Bank Home Mortgage has introduced a new 10-year
fixed-rate mortgage with a lower interest rate than the standard 15-year fixed
mortgage. Although rates are subject to change, the interest rate on a 10-year
loan through U.S. Bank Home Mortgage is currently 0.375 percent less than the
rate on the 15-year mortgage.
The new program is in response to customer interest in shorter-term loans, which
came as a bit of a surprise to U.S. Bank executives.
"We're seeing that with the war, recession and general economic uncertainty,
many of our 15-year mortgage customers are opting to refinance into a 10-year
mortgage in order to pay off their houses sooner and have that added security,"
said Dan Arrigoni, president of U.S. Bank Home Mortgage.
A 10-year mortgage with a discounted interest rate is rare, according to
Arrigoni, as many mortgage companies will offer a 10-year loan but at the same
rate as a 15-year mortgage. He also said the interest in this product shows
continued tendency to refinance, which many expected to plateau in 2003.
The 10-year mortgage is the latest in a series of mortgage innovations recently
announced by U.S. Bank Home Mortgage, which originates mortgage loans in all 50
states. In February, the company introduced the Payment Buster Home Mortgage, in
which the bank pays for the homeowner's mortgage insurance and offers a lower
monthly payment plus a one-percent discount on the interest rate for the first
year of the loan. Since its introduction, the Payment Buster has exceeded
expectations with record bookings in March and again in April.
U.S. Bank Home Mortgage is part of U.S. Bank, which is a subsidiary of U.S.
Bancorp. With assets in excess of $182 billion, U.S. Bancorp is the 8th largest
financial services holding company in the United States. The company operates
2,200 banking offices and 4,582 ATMs, and provides a comprehensive line of
banking, brokerage, insurance, investment, mortgage, trust and payment services
products to consumers, businesses and institutions. U.S. Bancorp is home of the
Five Star Service Guarantee which assures customers of certain key banking
benefits and services or customers will be paid for their inconvenience. Visit
U.S. Bancorp on the web at usbank.com.
SOURCE: U.S. Bank
CONTACT: U.S. Bank
Teri Charest, 612/303-0732
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SOURCE: U.S. Bank